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Technology change as a policy response to promote changes in land management for environmental benefits

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  • David J. Pannell

Abstract

A previous study developed a framework for choosing among groups of policy mechanisms for encouraging environmentally beneficial land-use change. The framework highlights that these choices should depend on the relative levels of private (or internal) net benefits, and public (or external) net benefits. Incentive-based mechanisms (polluter-pays and/or beneficiary-pays) and extension need to be targeted carefully to appropriate projects-where private net benefits are close to zero, and/or public net benefits are more extremely positive or negative. This article focuses on policy mechanisms that alter the net benefits of changing land management, including R&D to develop new technologies, and training to improve the skill of landholders at using existing technologies. These policy options are now treated more comprehensively within the public benefits: private benefits framework. Benefits of technology-change projects can include reductions in the opportunity cost of compliance with environmental programs, increases in the public benefits of a particular type of land-use change, or improvements in private net benefits, resulting in public benefits through greater or more rapid adoption by private landholders. From an environmental management perspective, technology development is most relevant where public net benefits of land use change are positive and private net benefits are negative, but not highly negative. There is a set of projects for which technology change is the only viable alternative to no action, highlighting the importance of technology change in these cases. Copyright (c) 2009 International Association of Agricultural Economists.

Suggested Citation

  • David J. Pannell, 2009. "Technology change as a policy response to promote changes in land management for environmental benefits," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 95-102, January.
  • Handle: RePEc:bla:agecon:v:40:y:2009:i:1:p:95-102
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    File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1574-0862.2008.00362.x
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    References listed on IDEAS

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    1. David J. Pannell, 2008. "Public Benefits, Private Benefits, and Policy Mechanism Choice for Land-Use Change for Environmental Benefits," Land Economics, University of Wisconsin Press, vol. 84(2), pages 225-240.
    2. Heidi Gjertsen & HChristopher B. Barrett, 2004. "Context-Dependent Biodiversity Conservation Management Regimes: Theory and Simulation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 321-339.
    3. Anders Skonhoft & Jan Tore Solstad, 1998. "The Political Economy of Wildlife Exploitation," Land Economics, University of Wisconsin Press, vol. 74(1), pages 16-31.
    4. Marsh, Sally P. & Pannell, David J. & Lindner, Robert K., 2004. "Does agricultural extension pay?: A case study for a new crop, lupins, in Western Australia," Agricultural Economics, Blackwell, vol. 30(1), pages 17-30, January.
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    Cited by:

    1. Pannell, David J. & Wilkinson, Roger, 2009. "Policy mechanism choice for environmental management by non-commercial "lifestyle" rural landholders," Ecological Economics, Elsevier, vol. 68(10), pages 2679-2687, August.
    2. repec:eee:agisys:v:157:y:2017:i:c:p:1-10 is not listed on IDEAS
    3. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers id:6623, eSocialSciences.
    4. Olubode-Awosola, Femi, 2011. "Integrated Assessment Modelling of Complexity in the New Zealand Farming Industry," 2011 Conference, August 25-26, 2011, Nelson, New Zealand 115404, New Zealand Agricultural and Resource Economics Society.
    5. Amrita Chatterjee & Arpita Ghose, 2016. "A dynamic economic model of soil conservation and drought tolerance involving genetically modified crops," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 18(1), pages 40-66, October.
    6. Amrita Chatterjee & Arpita Ghose, 2015. "A Dynamic Economic Model of Soil Conservation Involving Genetically Modified Crop," Working Papers 2015-096, Madras School of Economics,Chennai,India.

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